VAT One-stop shop schemes

The European Commission has produced guidance on its VAT One-stop Shop (OSS) schemes that will be effective from 1 July 2021. The guidance includes a new section ‘Guide to the VAT One Stop Shop’ providing details on registration, VAT returns and VAT payments for the three OSS schemes (union scheme, non-union scheme and import scheme).

UK businesses which sell goods and some services to EU consumers will need to consider these rules to decide if they need to apply them. The new Commission guidance covers:

• simplified rules for low-value (under EUR 150) goods consignments;
• new Import One-stop Shop (IOSS) to facilitate distance sales of low-value goods imported from non-EU countries;
• single member state registration for online sellers;
• abolition of the existing thresholds for distance sales of goods, replaced by an EU-wide threshold for distance sales of goods/BTE (broadcasting, telecommunications and electronic) services of EUR 10,000; and
• special ‘deemed supplier’ provisions and record-keeping requirements for online marketplaces.

The new EU-wide rules for distance sales of goods were introduced into the Principal VAT Directive by Directive 2017/2455/EU and will apply from 1 July 2021.